Sensex recovers after early losses, ends flat

Mumbai: After falling over 200 points initially, the S&P BSE benchmark Sensex on Wednesday recouped losses to end flat at 19,997.45 on the back of gains in shares of metal and banks, extending its winning run to the fifth day.

Markets saw bouts of profit-booking after the biggest four-day rally in four years in which Sensex had gained 1,757 points. This dragged the 30-share bluechip index down to day's low of 19,777.63 -- down 219 points from previous close.

However, helped by rise in SBI, HDFC, Sun Pharma and Tata Steel, the Sensex closed at 19,997.45, up 0.36 points. During the trade, Sensex shuttled between 20,055.53 and 19,777.63.

Brokers said banking stocks rose on hopes of an interest rate cut by the RBI next week even though investors were largely playing it safe ahead of IIP and inflation data.

SBI shot up by 3.52 percent to Rs 1,688.90, Bank of India by 10.46 percent to Rs 166.80, Bank of Baroda by 8.14 percent to Rs 520.80, Union Bank of India by 7.78 percent to Rs 117.80, Punjab National Bank by 7.07 percent to Rs 496.75 and Canara Bank by 6.82 percent to Rs 222.30.

The 50-share National Stock Exchange index Nifty managed to end higher by 16.40 points, or 0.28 percent to 5,913.15. It moved between 5,924.35 and 5,832.70 intra-day.

SX40 index, the flagship index of MCX-SX, ended at 11,838.59, down 11.07 points or 0.09 percent.

Sensex was dragged down by its three most influential constituents - Infosys fell by 0.96 percent to Rs 3,120.55, RIL by 0.15 percent to Rs 887.30 and ITC by 1.70 percent to Rs 329.70.